Question :
51.Denver Company prepares its statement of cash flows using the : 1253568
51.Denver Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:
Denver retired bonds payable by issuing common stock.
Denver collected on a long-term note receivable.
Denver issued a stock dividend.
Denver recorded depreciation on fixed assets.
Denver paid interest on long-term debt.
Which of these transactions or parts of these transactions would be included in the operating activity section of the statement of cash flows?
a. Transaction 2
b. Transaction 5
c. Transaction 4
d. None of these choices is correct.
52.Denver Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:
Denver retired bonds payable by issuing common stock.
Denver collected on a long-term note receivable.
Denver issued a stock dividend.
Denver recorded depreciation on fixed assets.
Denver paid interest on long-term debt.
Which of these transactions or parts of these transactions would not appear on the statement of cash flows?
a. Transactions 1 & 2
b. Transactions 2 & 3
c. Transactions 1, 2, 3, & 4
d. Transactions 1, 3, & 4
53.Denver Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:
Denver retired bonds payable by issuing common stock.
Denver collected on a long-term note receivable.
Denver issued a stock dividend.
Denver recorded depreciation on fixed assets.
Denver paid interest on long-term debt.
Which of these transactions or parts of these transactions would be included in the financing activity section of the statement of cash flows?
a. Transaction 1
b. Transaction 3
c. Transactions 1 & 3
d.None of these transactions would be found in the financing activity section.
54.Samuels Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:
Samuels purchased inventory on account.
Samuels collected open accounts receivable.
Samuels exchanged a building for land and realized a gain.
Samuels issued 75,000 shares of preferred stock.
Samuels purchased a three-year fire insurance policy.
Which of these transactions or parts of these transactions would be included in the operating activity section of the statement of cash flows?
a. Transactions 1,2 & 5
b. Transactions 2 & 5 only
c. Transactions 2, 3, & 5
d. None of these choices is correct.
55.Samuels Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:
Samuels purchased inventory on account.
Samuels collected open accounts receivable.
Samuels exchanged a building for land and realized a gain.
Samuels issued 75,000 shares of preferred stock.
Samuels purchased a three-year fire insurance policy.
Which of these transactions or parts of these transactions would be included in the financing activity section of the statement of cash flows?
a. Transaction 3 only.
b. Transaction 4 only.
c. Transactions 3 & 4
d. None of these transactions would be found in the financing activity section.
56.Samuels Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:
Samuels purchased inventory on account.
Samuels collected open accounts receivable.
Samuels exchanged a building for land and realized a gain.
Samuels issued 75,000 shares of preferred stock.
Samuels purchased a three-year fire insurance policy.
Which of these transactions or parts of these transactions would be included in the investing activity section of the statement of cash flows?
a. Transaction 3 only.
b. Transaction 4 only.
c. Transactions 3 & 4.
d. None of these transactions would be found in the investing activity section.
57.Samuels Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2010:
Samuels purchased inventory on account.
Samuels collected open accounts receivable.
Samuels exchanged a building for land and realized a gain.
Samuels issued 75,000 shares of preferred stock.
Samuels purchased a three-year fire insurance policy.
Which of these transactions or parts of these transactions would not be included on the statement of cash flows?
a. Transaction 1 only.
b. Transaction 5 only.
c. Transactions 1, 3, & 5.
d. Transactions 1 & 3.
58.The following information was taken from the records of Albert’s Fine Coffee:
2010
2009
Machinery
$90,000
$40,000
Accumulated depreciation
(30,000)
(20,000)
Depreciation expense
14,000
12,000
Gain on sale of machinery
4,000
1,000
During 2010, machinery with a cost of $16,000 was sold.
Based on this information, how much machinery was purchased during 2010?
a. $50,000
b. $66,000
c. $40,000
d. $60,000
59.The following information was taken from the records of Albert’s Fine Coffee:
2010
2009
Machinery
$90,000
$40,000
Accumulated depreciation
(30,000)
(20,000)
Depreciation expense
14,000
12,000
Gain on sale of machinery
4,000
1,000
During 2010, machinery with a cost of $16,000 was sold.
Based on this information, how much cash was collected on the sale of the machinery during 2010?
a. $10,000
b. $20,000
c. $4,000
d. $16,000
60.The following information was taken from the records of Albert’s Fine Coffee:
2010
2009
Machinery
$90,000
$40,000
Accumulated depreciation
(30,000)
(20,000)
Depreciation expense
14,000
12,000
Gain on sale of machinery
4,000
1,000
During 2010, machinery with a cost of $16,000 was sold.
The journal entry to record the sale of the machinery would include:
a.a debit to Accumulated Depreciation of $4,000.
b. a debit to Cash of $2,000.
c. a debit to Machinery for $16,000.
d. a credit to Gain on Sale for $3,000.
61.The following year-end totals were taken from the records of Langston Company.
2010
2009
Prepaid insurance
$8,000
$5,200
Wages payable
7,000
0
Insurance expense
4,000
5,700
Wage expense
9,500
4,000
What is the amount of cash outflow associated with insurance during 2010?
a. $4,000
b. $2,800
c. $1,700
d. $6,800
62.The following year-end totals were taken from the records of Langston Company.
2010
2009
Prepaid insurance
$8,000
$5,200
Wages payable
7,000
0
Insurance expense
4,000
5,700
Wage expense
9,500
4,000
What is the amount of cash outflow associated with wages during 2010?a. $9,500
b. $2,500
c. $5,500
d. $7,000
